Mon, 04 Sep 2023 | BUSINESS NEWS
Coral Products, a North West-based plastics manufacturer, has more than doubled its sales after completing four acquisitions during the first half of its financial year. The company, which specialises in designing, manufacturing and supplying plastic products, has seen group sales rise from £14.4 million in its previous results, to £32.5 million in the year to April 30 2023.
During its last financial year, Coral Products acquired Film & Foil Solutions, Manplas Limited, Ecodeck Grids and Alma Products. According to the group, £21.3 million of its total sales was derived from these acquisitions.
The group’s underlying EBITDA, meanwhile, rose from £1.8 million to £3.9 million and underlying pre-tax profit increased from £1.5 million to £2.34 million. The company also reported a gross profit margin of 29.7 per cent (36.7 per cent a year earlier), with gross profit increasing from £5.28 million in 2022 to £10.47 million this year.
Coral Products Chairman Joe Grimmond explained that the shift in gross margin reflected the group’s change in sales mix, following a year in which it completed several acquisitions of diverse companies.
In March of this year, the group entered into a new banking facility with Virgin Money, providing it with £10.35 million, comprised of £7.35 million for invoice discounting and £3 million for trade financing.
Commenting on the group’s results, Joe Grimmond said that it had experienced “a successful year” and had “invested in both organic and acquisition led growth, whilst maintaining our commitment to sustainability.”
Grimmond added: "Existing operations generated an 8 per cent improvement in gross margins reflecting the investment we have made and the drive of our autonomous business teams. The four acquisitions completed during the first half of the financial year delivered a significant sales uplift and, have integrated well, adding complementary expertise and products lines.”
"Despite investment in acquisitions and our ongoing capex programme, the group continues to be highly cash generative and has retained a strong gross cash position. Our objective remains focused on capitalising on our position in the specialists' plastics market where we see significant further opportunity."
Since the end of its last financial year, the group has continued its acquisitive expansion, with a deal for Spanish firm Ecotatou SL. This enables the group, which has UK manufacturing facilities in Wythenshawe, Denton and Haydock, and a distribution facility in Hyde, to establish a foothold in Spain for the sale and distribution of Ecodeck Grids.
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